Walmart has started an ambitious $1.6 billion remodeling of 650 of its US grocery stores.
The work on stores across 47 states and Puerto Rico is part of its sweeping ‘Stores of the Future’ initiative.
First introduced in 2023, the concept is now entering its full rollout.
Texas will have the highest number of store remodels – 67 – followed by California which will have 56.
Each remodeling will be a multimillion-dollar project, CoStar News reported.
Walmart wants the updates to ‘make shopping more convenient and enjoyable,’ the company said when announcing the project.
Remodeled stores will get a new coat of paint, new signs, more shopping carts and a bigger selection with expanded departments and new items.
“Expanding our product range is a key factor driving our growth, as more customers are discovering the items they need,” stated Walmart President and CEO Doug McMillon during a February earnings call.
Signs indicating stores are under renovation have started to appear in locations across the US
The stores will also feature a new checkout design at the front of the stores.
The layout of the locations will also be overhauled to provide greater space for shoppers and store workers.
The new plans will include corner displays where shoppers can view items out of their boxes.
‘Digital touchpoints’ will also be scattered throughout the store to provide information on different products and services.
Stores with pharmacies will see them moved to the front of the store with new private screening rooms.
Walmart’s vision centers will also be revamped, offering a wider range of designer eyewear and prescription options.
The company will also expand its online pickup and delivery services to fulfill the rising number of online customer orders.
Amidst and following the Covid-19 pandemic, Walmart has been attracting wealthier shoppers seeking cost-effective grocery options, with a goal to keep these affluent customers, according to CoStar News.
Walmart President & CEO Doug McMillon attended the closed door meeting on Monday
The new plans will include corner displays where shoppers can view items out of their boxes
The new layouts will include greater space for shoppers and store workers
AI and computer vision in the exit area of Sam’s Club will capture images of customer carts and verify payment for all the items in their basket
Walmart claims the remodel will create tens of thousands of jobs, according to a post on the company’s website.
On top of the major remodeling project, Walmart plans to build or convert a further 150 stores in the next five years.
The first two new stores to open as part of the scheme will be in Santa Rosa Beach, Florida and Atlanta, Georgia.
Walmart is simultaneously accelerating its push to dominate another area of retail – namely gas stations.
This year, the company aims to launch 40 to 45 convenience stores with fuel stations adjacent to its main locations—more than twice the number from last year—and plans to maintain this expansion rate over the next five years.
The expansion will bring Walmart’s total to around 460 fuel station locations by the end of the year. The retailer opened its first one back in 2014.
Walmart is also pressing ahead with other technological developments including its AI-powered checkouts at Sam’s Club, its warehouse based rival to Costco.
As part of the move, all self-checkouts are being removed from Sam’s Club’s 600 stores.
The ‘Scan & Go’ technology lets shoppers skip the line and walk straight out the door once they’re done shopping.
The move is controversial because it uses a network of cameras and sensors to track shoppers and their carts.
In addition, the checkout-free experience requires all customers to use a smartphone and download the store’s app.
This could pose a challenge to older shoppers who may struggle with technology.
